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South Bend Redevelopment Commission <br />Special Meeting - November 15, 1993 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />Mr. Horton explained the technical nature of <br />the transactions which will take place. The <br />City of South Bend will sell Century Center <br />to the Redevelopment Authority. The money <br />from the Redevelopment Authority will come <br />back through the City of South Bend, who <br />actually has a purchase option on Century <br />Center, the City will exercise the purchase <br />option and refund the old bonds. The <br />support for the new bonds will be a Lease to <br />the Redevelopment Commission which will <br />sublease the facilities to the City of South <br />Bend which will have two separate subleases: <br />one for Century Center and one for the Hall <br />of Fame. The separate subleases will assure <br />the integrity of the repayment —the Century <br />Center sublease will be consistent with what <br />is required to amortize its portion of the <br />bond, as will the sublease for the Hall of <br />Fame. <br />Mr. Horton summarized the benefits to be <br />achieved through this bond issue: a new Hall <br />of Fame, a new owner for Century Center, <br />improvements to Century Center, and lower <br />costs of bond issuance. <br />Mr. Horton noted that the revenues that the <br />Hall of Fame are expected to generate were <br />not included in the revenue stream to repay <br />the bonds. The City prefers to put this <br />money into a capital improvement account or <br />an operating reserve for the Hall of Fame. <br />Mrs. Kolata noted that this project is a <br />redevelopment and an economic development <br />-7- <br />